EX-12.1 2 wlfc-20181231ex121e28bdb.htm EX-12.1

Exhibit 12.1

WILLIS LEASE FINANCE CORPORATION

AND SUBSIDIARIES
Statement of Computation of Ratios of
Earnings to Fixed Charges and Preferred Dividends

(In thousands, except ratios)

|  | Years Ended December 31,
|  | 2018 |  | 2017 |  | 2016 |  | 2015 |  | 2014
Earnings: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Earnings from continuing operations before income taxes |  | $ | 52,474 |  | $ | 28,853 |  | $ | 22,133 |  | $ | 11,600 |  | $ | 10,411
Fixed charges |  |  | 64,726 |  |  | 49,212 |  |  | 41,587 |  |  | 39,395 |  |  | 37,416
Cash distributions from equity method investments |  |  | 5,730 |  |  | 1,880 |  |  | 1,167 |  |  | 1,304 |  |  | 847
Total earnings |  |  | 122,930 |  |  | 79,945 |  |  | 64,887 |  |  | 52,299 |  |  | 48,674
Fixed charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  |  | 64,220 |  |  | 48,720 |  |  | 41,144 |  |  | 39,012 |  |  | 37,062
Estimated interest expense within rental expense (1) |  |  | 506 |  |  | 492 |  |  | 443 |  |  | 383 |  |  | 354
Total fixed charges |  |  | 64,726 |  |  | 49,212 |  |  | 41,587 |  |  | 39,395 |  |  | 37,416
Preferred stock dividends (2) |  |  | 3,250 |  |  | 1,813 |  |  | 281 |  |  | — |  |  | —
Total fixed charges and preferred stock dividends |  | $ | 67,976 |  | $ | 51,025 |  | $ | 41,868 |  | $ | 39,395 |  | $ | 37,416
Ratio of earnings to fixed charges |  |  | 1.90 |  |  | 1.62 |  |  | 1.56 |  |  | 1.33 |  |  | 1.30
Ratio of earnings to fixed charges and preferred stock dividends |  |  | 1.81 |  |  | 1.57 |  |  | 1.55 |  |  | 1.33 |  |  | 1.30

| (1) |  | Represents an estimate of the interest within rental expense. There is no expressed interest expense within rental expense. Rather, the imputed interest expense within rental expense is calculated by multiplying by 30% the office rent expense for each of the years ended, as indicated above.

| (2) |  | Represents pre-tax earnings required to pay preferred stock dividends.